Consumer Behavior of College Students in the Czech Republic

Horáková Monika

Abstract:
This contribution is a follow-up to the topic of consumer behavior which is analyzed from the
economic theory perspective on microeconomic as well as a macroeconomic level. The main
objective of the article is to reveal the structure of college students’ consumer basket determined
according to disposable income and its changes. In this article, the methodology of a consumer
basket was used. The division of it was done by Czech Statistical Office to calculate the inflation
rate in the environment of the Czech Republic. In this article, the analysis of college students’
consumer basket was done. The pressure on having a higher qualification in tertiary education
is a typical trend across Europe, which is also one of strategic goals of EU Strategy 2020 and
its concept. There is clear evidence of a growing segment of college students that represents a
significant demand group on the product and service market. The knowledge of their consumer
habits is definitely beneficial for companies regarding their competitive advantage and reaching
higher incomes from the products offered. The market product consumption is dependent
on the total disposable income mainly. That is fundamentally dependent on hours of paid work
or other fund contributions. The current disposable income shows the differences regarding
consumption expenditures of a consumer basket and its various categories. A lower disposable
income is typical for flowing the highest consumer expenditures from class 1 (Food and
non-alcoholic beverages) to class 4 (Housing, water, electricity, gas and other fuels) of a higher
disposal income. If the current disposable income of college students increases, there would be
higher consumption expenditures regarding classes 9, 3 and 5 (Recreation and culture; Clothing
and footwear; Furnishings, household equipment and routine household maintenance). On the
contrary, a lower disposable income would mean lower expenditures regarding classes 3, 2 and 9
(Clothing and footwear; Alcoholic beverages and tobacco; Recreation and culture).
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